Question

Discuss the factors that determine the appropriate authority and control structure in (a) a research and development laboratory, (b) a large department store, and (c) a small manufacturing company.

Answer 1

^{Factors determining authority and control:}

1. Nature of work

2. Capacity of supervisor

3. Communication network

4. Top management objective whether to decentralize or not

5. Skills required

6. Supervision required

7. Clarity of plan

8. Financial position

9. Superior subordinate relationship

Now,

A. In case of R and D lab:

High skill is required

High supervision is required

Team effort or superior subordinate relationship required

Reporting of progress of research to top management is also necessary

In such case, two structures are possible

i. Matrix structure in which subordinate will have to report to two authorities or

ii. Project team, in which there will be open discussion and implementation

B. Large departmental store

There is no clear division of work eg sales person may also collect money  

Soft skills are required

Less supervision is required

For such organisation flat organisation structure wull be prefered as generally owner is manager as well

C. A small manufacturing company

In manufacturing company different skills are required for different person eg shop floor worker should have technical skills, marketing person should have soft skills, Production manager should have technical as well as managerial skill to supervise.

Supervision in non automated company is required

In such case, divisional structure should ne prefered with proper hierarchy eg worker to report to supervisor, suoervisor to HOD, HOD to factory manager. Similarly, in marketing, sales executives to assistant manager to manager to sr manager to executive.